WASHINGTON, June 18, 2013 – The U.S. Department of Agriculture (USDA) has imposed sanctions on four produce businesses for failure to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA).
The following businesses and individuals are currently restricted from operating in the produce industry:
- Klayman Produce Co. Inc., operating out of Philadelphia, Pa., for failing to pay a $16,743 award in favor of a California seller. As of the issuance date of the reparation order, Mark E. Klayman was listed as the officer, director, and major stockholder of the business.
- Ismael Mariano, operating out of San Diego, Calif., for failing to pay a $25,240 award in favor of a California seller. As of the issuance date of the reparation order, Ismael Mariano was listed as the sole proprietor of the business.
- Jaya Produce Inc., operating out of Brooklyn, N.Y., for failing to pay a $4,464 award in favor of a Virginia seller. As of the issuance date of the reparation order, Kok Heng Shoo was listed as the officer, director, and major stockholder of the business.
- De Bruyn Produce Co., operating out of La Villa, Texas, for failing to pay a $16,779 award in favor of an Oregon seller. As of the issuance date of the reparation order, Margaret De Bruyn was listed as the officer, director, and major stockholder of the business.
PACA provides an administrative forum to handle disputes involving produce transactions; this may result in a reparation order being issued that requires damages to be paid by those not meeting their contractual obligations in buying and selling fresh and frozen fruits and vegetables. USDA is required to suspend the license of a business that fails to pay PACA reparations awarded against it as well as impose restrictions against those principals determined to be responsibly connected to the business when the order is issued. Those individuals, including sole proprietors, partners, members, managers, officers, directors, or major stockholders may not be employed by or affiliated with any PACA licensee without USDA-approval.
The Agricultural Marketing Service (AMS), PACA Division, regulates fair trading practices of produce businesses operating subject to PACA, which includes buyers, sellers, commission merchants, dealers, and brokers within the fruit and vegetable industry. All oversight of actions related to PACA are conducted by AMS, an agency within USDA.
In the past three years, USDA resolved approximately 5,000 claims filed under PACA involving almost $96 million. This is just one more way USDA continues to support the fruit and vegetable industry.
For more information, contact John Koller, Chief, Dispute Resolution Branch at (202) 720-2890, by fax at (202) 690-2815, or by email at disputeresolutionsection@ams.usda.gov regarding this matter.
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